19 Jun 2009 08:23
| For immediate release |
| Date: 19 June 2009 |
This announcement replaces RNS number 9405T of 16 June 2009 correcting a statement re planning permission.
The TEG GROUP PLC (TEG/L)
("TEG" or "the Company")
TEG concludes £1.6m Contract
New TEG Silo Cage Plant to be Constructed in Derbyshire
The TEG Group Plc, the AIM-listed cutting edge green technology company, which converts organic wastes into natural organic fertiliser, confirms that it has concluded a contract with Taywell Composting Limited ("Taywell") to supply a TEG Silo Cage plant to be constructed in Matlock, Derbyshire.
TEG's contract is for a 32 Silo Cage plant with a nominal capacity of 19,000 tonnes per annum to be installed inside Taywell's buildings, with TEG responsible for the manufacturing and installation of the plant and equipment. The value of the contract to TEG is approximately £1.6m. TEG has been informed by Taywell that the site has been granted planning approval, subject to a Section 106 agreement between the local council and Taywell, a routine process which sets out matters that Taywell will address as part of the development and which Taywell expects to be agreed imminently. On this basis the supply and installation of TEG's equipment is expected to be completed in 2009.
Commenting for TEG, Chief Executive Mick Fishwick said: "We are very pleased to have been awarded this contract by Taywell. It follows an extensive review of technologies by Taywell and is a further strong endorsement of the TEG Silo Cage technology. It is also very pleasing to have received an order from the private sector which compliments well our recent gains in the public sector."
ENDS
Contact:
The TEG Group Plc Tel: 01772 644980
Michael Fishwick, Chief Executive
Peckwater PR tarquinedwards@btinternet.com /
christophersteele@btinternet.com
Tarquin Edwards / Chris Steele 07879 458 364 / 07979 604 687
Canaccord Adams (Nomad) Tel : 020 7050 6500
Robert Finlay
Guy Blakeney
Editor's Notes:
TEG
TEG provides an in-vessel composting technology, which is one of the few approved technologies capable of treating animal by-product (ABP) waste. Plant economics are predominantly driven by the gate fees charged, rather than the value of the end product (compost). The TEG process is an economic alternative to landfill.
The Silo Cage system, one of the few technologies in Europe capable of treating this waste, is a natural process producing compost as an end product. The compost is an excellent soil conditioner that fertilises, retains moisture, provides structure and reduces the incidence of plant disease. TEG's Silo-Cages are housed in self-contained buildings, are not unsightly and are environmentally friendly.
Customers include local authorities, waste management companies, food processors, farmers and landowners. The Company's expanding market is driven by increasingly stringent EU and UK legislation regulating the treatment and disposal of organic waste. Statutory targets for the diversion of waste from landfill increase annually through to 2020, increasing TEG's market opportunity year on year. The Waste Resource Action Programme estimates that 450 composting plants will be needed by 2020 to satisfy local authority requirements alone, and there is increasing demand from the private sector driven by ABP legislation.
NOFCO, a subsidiary of TEG, is a marketing company specialising in the development of end markets for compost products, an important aspect of all plant developments and key to local authority development. The company has an expertise in the development of agricultural and horticultural markets and this capability is to be provided to customers to enhance TEG's overall service offering.